Data results that raise hopes of a soft landing could support the USD, but not so much – Commerzbank

Somehow it is all about the Dollar. Antje Praefcke, FX Analyst at Commerzbank, analyzes Greenback’s outlook.

Focus remains on the Dollar

As the FOMC decisions depend on the data I assume that mainly price and economic data will have the potential to move the Dollar. Therefore, data results that raise hopes of a soft landing could support the USD, but not so much because of monetary policy, but rather because the US economy seems more resilient than other economies in this interest rate cycle.

At the same time, there is a lack of information on the Euro side. The ECB is not commenting, the first speakers will only communicate at the end of August. Hardly surprising therefore that the focus remains on the Dollar. However, I have my doubts that the second-tier data really will have the power to move EUR/USD away from the 1.09 mark.